Judicial Commissioner Kristy Tan of a Singapore High Court has granted the Indian crypto exchange, WazirX, a four-month conditional moratorium to restructure its liabilities after experiencing a major $230 million cyber heist in July.
The court ruling implies that WazirX has been granted a four-month breathing space to restructure its debts, under Section 64 of the Insolvency, Restructuring, and Dissolution Act (IRDA), with certain conditions attached.
The court orders WazirX to disclose wallet addresses, respond to user queries, release financial records within six weeks, and ensure third-party oversight of future voting processes.
WazirX Suffers Massive $230M Hack
India’s biggest crypto exchange WazirX suffered a massive hack in July losing about $235 million in various cryptocurrencies, including USDT, Ethereum, and Shiba Inu.
The hacker infiltrated the exchange’s network through its Ethereum-based Safe Multisig Wallet, using TornadoCash, a decentralized protocol for private transactions on Ethereum, to conceal transactions.
Following the incident, WazirX suspended withdrawals and launched an investigation. In addition to the stolen funds, the exploit caused the crypto exchange’s token, WRX, to drop by 15%.
A week after the attack, WazirX suspended trading on the platform to protect users’ funds and announced a reward to anyone who could help identify the hacker and secure the lost funds.
After several unsuccessful attempts to recover the stolen funds, WazirX, through its Singapore-based parent company, Zettai Pte Ltd, filed for a 6-month moratorium in August. The application, submitted by Director Nischal Shetty included a request for a six-month breathing space to settle financial liabilities after the hack.
However, the latest update indicates that the initial extension request was modified to four months.
WazirX Users React to the 4-Month Moratorium
WazirX’s conditional moratorium approval by Singapore’s court drew mixed reactions from the crypto community.
The approval sparked widespread skepticism, with hardly any users expressing enthusiasm, as most worried that the four-month extension would grant the hacker sufficient time to dispose of stolen funds.
The WazirX hack, with over Rs 2000 crore in stolen funds, has led to a 4-month moratorium approved by Singapore’s High Court.
This prevents legal action, leaving users in the dark as transparency and updates from the exchange remain scarce.
With no hope of recovering the lost… pic.twitter.com/MHpZwRpu4D
— Alok 🦁 (@alok9811) September 26, 2024
